The market capitalization of all cryptocurrencies grew up by more than 380% during 2021. About a year ago, the total market capitalization of cryptocurrencies was the size of ether (ETH).
The second week of November 2021 started with some news in the world of cryptocurrencies. The global market capitalization of the industry surpassed 3 trillion US dollars (USD). This event represents a growth of 50% during the last semester.
Just six months ago, total market capitalization had hit the $ 2 trillion mark. According to data revealed by CoinGecko, global investment in cryptocurrencies has grown almost 3,000% over the last two years.
On the other hand, two currencies continue to stand out from the rest for raising an amount near the totality of the funds: bitcoin (BTC) and ether (ETH).
Of the total capitalization of USD 3 trillion in different cryptocurrencies, only bitcoin represents 40% (USD 1.2 trillion) and ether 16% (USD 560 billion) of the total. This capitalization means that BTC keeps maintaining a considerable difference in front of the second highest value cryptocurrency on the market with almost a double margin.
However, bitcoin has lost dominance in the last year, following the increase of ether and other lower-value cryptocurrencies. These currencies are Binance Coin, Cardano, tether, Solana, XRP, Dogecoin, and USD coin.
Bitcoin Doubles the Market Capitalization of Ether, Despite Slower Increase
The capitalization of ether has also grown more than that of bitcoin. Precisely, BTC quintupled, while ETH managed to multiply by ten, that is, by twice. Today, the volume of the second asset meets the same as the total cryptocurrency market had a year ago.
In addition to having approached a global market capitalization of USD 3 trillion, another vital milestone occurred for the two cryptocurrencies this week. Both bitcoin and ether started the week with a rise in price until reaching their all-time highs in the early hours of Tuesday, November 9.
Bitcoin exceeded the $ 68,000 mark, and ether reached $ 4,800, its all-time highs so far. The prices of both cryptocurrencies have been stable for the past three weeks without any decline.
The cryptocurrency market analyst at BitBank bank in Japan, Yuya Hasegawa, discuss that the rise in bitcoin happened due to two reasons. On the one hand, Yuya thinks that it came to effect due to the fall in real bonds of -1.09% in the last ten years, and, on the other hand, it acts in response to generalized global inflation.
As long as the headlines in the media about increasing inflation in Latin America, the United States of America, and Europe continue, the fluctuation of bitcoin could be an advantage, according to the analyst.
The upward movement could happen due to the impact of whales. According to data gathered from the Chainalysis firm, these heavyweight investors accumulated near 200,000 bitcoins in October. If they sell these Bitcoins in mass, they could cause a huge loss.
According to analysts Hasegawa and Kukan, demand remains growing and will do so for a long time. Although speculators claim there could be a small breakout of bitcoin’s bullish behavior in the coming days, there are those who sustain that the price is experiencing an overvalue.
By: Jenson Nuñez
